Frequently Asked by Entreprenuers:
Capital Angels doesn't have a non-disclosure agreement (NDA), so how is confidentiality maintained?
Why don’t we sign NDAs? We just see too many deals, often in a similar space; the same is true for VCs. If you have intellectual property (IP) that has not been patented, then you should not disclose it to us. Anything you place in your funding application remains password protected, available only to our members. In general, we’re more interested in the business issues behind the technology; we don’t invest in inventions, but in concepts supported by attractive business models. In final due diligence we may need to research IP issues and then NDAs might be used in certain cases.
Do you only invest in technology companies?
No. Our investments are a reflection of the Canberra economy which is geared toward high-technology and services. However, our members are interested in a variety of sectors:
financial, media, life science and biotech, software of all kinds, technical services, IT, transportation services, games, retail, anything internet related, consumer products and technology too.
Does Capital Angels invest as a group? As a fund?
Capital Angels does not invest as a group. Each member makes their own decision to invest and writes a cheque to the company.
Frequently Asked by new Members:
How long does it typically take to achieve an exit?
It varies. Successful exits can take several years; it takes time to build a startup. You'll see failures in your portfolio and they often happen in a year or two. One or two successful exits make up for all the failures, and more. The economy at large has a lot to do with exits, too. During boom years exits came fast and furious. Today the climate is more prudent and companies are diligently building value before being acquired. The climate can change quickly. Expect an average startup to grow for 5 or more years before a successful exit.
How much should I invest in each deal?
That amount might be different for each member based on your net worth, but consider starting modestly. Most Angels, however, do begin modestly in the 10-25K range.
Investing in early stage companies is risky. What advice do you offer on managing this risk?
The first step: learn as much about early stage investing as you can from other Capital Angels. We offer educational seminars on a regular basis, too. Spend time working with a due diligence team; you’ll learn the unique risks of each investment and improve your investment spotting skills. Lastly, diversify. Invest in multiple deals that you feel are of a high quality and spread your risk.